Today, when you search for “most hilarious cryptocurrencies”, you’re sure to find Dogecoin in the list. Launched in December 2013, Dogecoin is a cryptocurrency based on the wildly popular internet meme – which is a picture of a Shiba Inu dog – surpassed many people’s expectations by going on to become a “mainstream” cryptocurrency despite its hilarious background.
Seven years down the line, how is the coin doing? And where can you grab some DOGE? Also, is it worth investing in?
We explore those questions and more in this piece. But first, let’s see how Dogecoin came to be.
History of Dogecoin
Dogecoin is one of the cryptocurrencies with unlikely backstories. After all, it began with a tweet. In November 2013, then Adobe Inc. engineer Jackson Palmer tweeted: “Investing in Dogecoin, pretty sure it’s the next big thing.”
What’s interesting is, the tweet was actually a sarcastic dig at the fast proliferating number of altcoins (cryptocurrencies that are not Bitcoin), each with a claim of being the “next big thing.” What he didn’t know was that his tweet would receive positive feedback. He then decided to register the domain name dogecoin.com.
Meanwhile, the activity surrounding the tweet had captured the eye of an Oregon-based software engineer Billy Markus. Markus had long been wanting to create a cryptocurrency but had not succeeded in generating buzz around it.
He then requested Palmer to allow him to begin work on a cryptocurrency – with the name Dogecoin. Palmer gave him a nod, and he got to work. Markus based Dogecoin’s code on now-defunct Luckycoin, which was itself a derivative of Litecoin. Dogecoin uses the same consensus model as Litecoin – the Scrypt algorithm. Palmer and Markus launched Dogecoin in December 2013.
Two weeks after the coin went live, it saw a massive increase of 300% in value – going from $0.00026 to $0.00095 in just 72 hours. It continued growing – going on to garner a market capitalization of $2 billion in 2018.
As happens a lot in cryptoverse, the coin has since taken on a more bearish mode and currently has a market cap of $451 million at the time of writing. However, the currency has managed to hold on tightly to the top 50 after all these years, which is impressive when you consider its frivolous beginnings. It’s now ranking at #47, according to Coinmarketcap.
Dogecoin’s staying power can be attributed to its reputation as a fun-loving take on cryptocurrency. While most cryptocurrencies come out with complicated ambitions and whitepapers, Dogecoin presented itself as a light-hearted Bitcoin version. While Bitcoin was mostly used as an asset, Dogecoin was actively used as a currency.
DOGE In 2020
Dogecoin has had a relatively uneventful year – showing neither bullish nor bearish signs. The crypto opened the year at $0.002023, and as at the time of writing, it was exchanging at $0.003481 – only a marginal increase.
Similarly, 24-hour trading volumes have nearly remained the same (about $70 million at the start of the year versus $80 million at the time of writing).
While Doge’s prices have increased only slightly, its market capitalization has nearly doubled in 2020. This is an indication that the coin is gradually but steadily gaining ground.
Around July, community efforts focused on boosting the crypto intensified. There were numerous online campaigns that aimed at encouraging users to buy Dogecoin.
At some point during the heated TikTok campaigns, Doge saw nearly 20% price increases within 24 hours. Some investors would argue that these are modest rallies, but considering that the coin has avoided any major plunge, it is reasonable to assume that its growth is slow but sure.
Where to Buy Dogecoin?
According to Coinmarketcap, Dogecoin appears on the top 50 digital currencies by market capitalization.
This makes it easier to find it on the most popular crypto exchanges. Talking of popular exchanges, you can buy Dogecoin on Binance, Coinbase, or even Kraken.
While buying from these exchanges, you can pay with credit/ debit cards, bank transfers, and other popular options. So, let’s see the different options for buying the crypto.
With Cryptocurrencies: #1 Binance
If you have BTC, ETH, BCH, or any other major crypto and want to buy Doge, Binance will be among your best options.
This cryptocurrency exchange focuses its operations on crypto-to-crypto trading. This makes it suitable if you want to sell one crypto to buy another. The company has maintained good standing in the blockchain community mainly because it offers many exchange pairs. The company also provides a high level of assurance for your funds, unmatched customer service, and ease of use.
When buying Dogecoin on the platform, you may find the following step by step guide can be useful:
- Register an account on Binance and adjust to the recommended security configurations, including setting up 2-factor authentication.
- Next, load funds to your account. You can load USD, BTC, XRP, and so on.
- Go to ‘Trade’ and select the currency that your account holds and the currency you want to buy select Dogecoin.
- Complete the purchase.
With Coinbase, you can buy and store multiple currencies, including BTC, ETH, ETC, BCH, and many more. Coinbase does not yet support Doge, but they plan to roll out its support soon through a wallet update.
The update will allow users to buy and store Doge on the platform. Users with the old wallet can upgrade to Doge support by clicking on ‘Receive’ on the wallet’s main tab, then selecting Doge.
You can also buy Dogecoin using USD from exchanges that support this exchange pair. Kraken is a reputable example where you can buy Doge with US dollars, among other currencies.
The exchange also offers some of the best exchange rates in the market.
With this exchange, you also get the best-in-class security for your wallet so that you don’t have to worry about your funds’ safety. That said, you should take care not to lose your private key as it is the only way to access your funds.
To buy Dogecoin on the platform, the following steps are generally useful:
- Register for an account. Always remember to use a strong password as the account may store your funds from time to time. Due to compliance requirements, the registration process may require you to provide your name, date of birth, country of residence, and phone number, which is the case with most major exchanges.
- Verify your account by clicking on the link sent to your registered email.
- Once verified, you can purchase Dogecoin with crypto such as DASH and LTC. However, the exchange supports EUR and USD payments too. To buy using USD, additional identity verification will be required to confirm that you are above 18 years and reside in a supported jurisdiction.
- The next step is depositing your dollars to your account. You can do so using FedWire, SEPA, SWIFT, wire transfer, and other options. Each option offers different fees, transaction limits, and processing times.
- Once your account is loaded with fiat currency, it’s time to buy Doge!
If you have the required documents (valid ID and proof of residence, and a face photo), the whole process should take less than 10 minutes.
Once you have purchased Doge, you can choose to keep it in Kraken’s wallet. However, we recommend moving your funds to a native wallet since the platform is an exchange and not a wallet service. If you’re looking into buying Doge for long-term investment, consider a hardware wallet.
With Credit Card
Besides buying Dogecoin with the previously-discussed methods, you can also buy it with a credit or debit card. All you need is to find an exchange that supports Doge and accepts credit card payments.
Luckily, you cannot run out of exchanges and brokers that support Dogecoin and accept the credit card payment method. Some of the convenient options include Coindirect.com, Litebit.eu (if you are from the EU region), Anycoindirect.eu, and Coinswitch.co, among others.
Each exchange works uniquely, but there are many similarities in how the process works for each exchange.
For example, the following process applies when purchasing from Coinswitch.
- Register and sign in to Coinswitch.
- Enter the amount of dollars/ euro/ pounds (whichever applies to your credit card) that you want to spend and select view offers.
- Coinswitch will show you a list of recommended sellers. Select a seller of your choice and proceed.
- Enter the receiving address. Ideally, this should be your Dogecoin wallet address.
- Next, you will have to select pay with credit/debit card. This will redirect you to a page where you will enter your card details to complete the transaction.
If you have funds in your PayPal account, the good news is that you can convert it to Dogecoin – only that the process might involve several steps.
The fastest option is converting your funds to BTC then converting BTC to DOGE. For this, P2P exchanges such as Paxful, where you can buy and sell Dogecoin, come in handy.
With Paxful, you can easily find sellers who can sell you BTC. Beginning January 2020, it will also be possible to buy Bitcoin directly from your PayPal account, which will make the process even shorter.
Once you have your Bitcoin, you could send it to an exchange that supports Doge, for example, exodus.io. Exodus.io will allow you to change Bitcoin for DOGE. Of course, if you already hold Bitcoin, you would not need to go through this long way.
Can I mine Dogecoin?
The simple answer is yes! You can mine DOGE although the back-end mechanics differ from Bitcoin mining. One thing that distinguishes Dogecoin from Bitcoin is the fact that there is no maximum amount of Dogecoin that can be in circulation.
All the same, you can mine Doge either alone or by joining a mining pool. Whichever option you choose, you can mine using Windows, Android, Linux, or MacOS.
Is DOGE really a Good Investment?
Investors and speculators are split over whether DOGE is a good investment. Compared to the hype surrounding it after its release, the crypto has quieted down in recent years. Nevertheless, its growth has been relatively slow compared to the major cryptos such as Bitcoin and Ethereum.
At the time of writing, Dogecoin was exchanging at $0.003403, and the 24-hour trading volume was $48,609,627. The crypto’s market capitalization stood at $433,396,305, which ranked it at #47. Also, the number of DOGE in circulation was roughly 127,361,296,648.
The numbers are just okay, but they do not tell the story of a booming crypto. Even so, what brings hope to the future of Dogecoin is its vibrant community. There is such a lively user community behind Dogecoin that they once raised its value by 24%, just by encouraging users to pump.
If the bullish activity continues to dominate the crypto market, Dogecoin is likely to improve. Occasional endorsement by influential figures like Elon Musk will also probably see the coin remain relevant. But do events like these signal that DOGE is a good investment?
We could say that with Dogecoin having such a strong community, it will always be that fun and light-hearted cryptocurrency that so many people warmed up to.
But frankly, with its rather tepid performance in recent years, there’s no straightforward answer to that question. Some investors might buy the coin out of a sense of loyalty, while others might buy it hoping for a future bullish run. Whether the currency will finally pick up and offer investors handsome returns is purely a matter of wait-and-see.